Precision Machinist Corporation (PREMACOR)

COMPANY BACKGROUND
Everybody loves a success story. But few stories touch the heart of ordinary men
as much as the story of Jose Morales. How he built
one of the finest precision engineering companies
in Cebu is truly an inspiring narrative for every
underprivileged soul who dreams big.
Born to destitution, life was lined with
adversities for the young Morales. He was forced
to earn a living while studying in the city, taking
whatever odd jobs he could find, to augment the
meager family income. The obstacles he had to
face for several years would have broken the spirit
of men made of weaker stuff. But lifes trials only
made Morales more determined to overcome his
poverty. What made Jose Morales different from
any cash strapped teenager was his unwavering belief that he would one day be
financially independent. He also knew that knowledge was the key to reaching his goal.
After graduating from a metalworking course, Morales worked at an engineering
and research company for nine years until he realized that he would be better-off
managing his own business. In 1980, armed with a few thousand pesos, he established
the Precision Machinist Corporation (PREMACOR). He set-up his service shop in a
small run-down house and serviced the machine parts needs of beverage, shipping and
mining industries in Cebu for a few years.
PREMACOR was later incorporated in 1984 to become a high precision machine
parts manufacturer that would service local and overseas customers. He later acquired
a foreign scholarship through the assistance of the Department of Trade and Industry
Cebu Provincial Office. This immersed him for a year in a German factory and opened
his eyes to future possibilities for his
company. German technology fascinated
him. In the hands of German trainers, he
developed a voracious appetite for
knowledge on the latest trends in precision
engineering. Working at a foreign
manufacturing plant provided him with
hands-on
knowledge
on
modern
machineries to increase work productivity
and allowed him to see the advantages in
adopting a mindset attuned to market
needs. His later experiences working with
Japanese clients molded him to be more
flexible and quickly adjust to change. Sometime in 1987, PREMACOR started servicing
companies at the Mactan Economic Zone (MEZ). Today a huge share of PREMACOR
revenues comes from servicing these companies.

Unlike most local suppliers, the high and exacting standards of MEZ companies
never daunted Morales. Although in the beginning, he had to deal with several product
rejects, he knew that MEZ companies were willing to teach him what he needed to
learn. A hands-on manager, he had no qualms about learning new things even at his
age. In fact, Morales believes his company thrives on its openness to change, constant
improvement and modern work methods.
Through the years, PREMACOR acquired the capability and know-how
necessary to produce metal components within 5 micron accuracy, from ordinary heat
treated tool steel or ferrotic to the most difficult to cut tungsten carbide. Today, the
company manufactures high-precision Plastic Injection Moulds, Vacuum Forming
Moulds, Stamping Dies and Semicon Tooling Components. It operates a well-equipped
air conditioned tool room. Its workshop is stocked with the latest model, high-grade
machinery made by some of the worlds best-known manufacturers, a number of which
are capable of achieving single digit tolerances.
PREMACOR is now ISO certified, meaning that the company is up to par with
international standards. With its reputation for quality products and service, the
company currently gets a lot of attention from foreign companies. Recently, a foreign
firm is planning to tie up with his company to service Asia.Jose Morales has not only
achieved financial independence but also respect from international manufacturing
firms.
Despite his success, he still remembers his beginnings and has a soft spot for
the underprivileged members of society. He is presently employing metalworking
graduates from Don Bosco Technical School and Center for Industrial Technology and
Enterprise (CITE), making his factory a sort of finishing school for these young people
before they leave for better opportunities outside the country.
Now enjoying financial stability, he advises Filipino families to embrace
entrepreneurship as a means to improve their economic status. He believes that
entrepreneurship is the answer to poverty alleviation and should be inculcated at a
young age. Starting a business does not entail a lot of money as proven by Jose
Morales. A person only needs to specialize in a small area of the industry and make
money out of it. Morales showed that as soon as an entrepreneur makes a name for
himself by providing a track record for good quality products and excellent service, he
will attract bigger clients. Not only has Morales proven that anyone can overcome
poverty through entrepreneurship, but that supplying the needs of companies in Cebus
economic zones is good business.

COMPANY PROFILE
The company has been in existence since 1980, servicing at first the machine
parts needs of the beverage, shipping and mining industries. PREMACOR was
incorporated in 1984 to become a high precision machine parts manufacturer to service
local and overseas customers. In 1987, the company changed direction towards
precision engineering and started servicing companies at the Mactan Economic Zone
(formerly Mactan Export Processing Zone).

Through the years, PREMACOR has acquired the capability and know-how
necessary to produce metal components within 5 micron accuracy, from ordinary heat
treated toolsteel or ferrotic to the most difficult to cut tungsten carbide. The company
currently manufactures high precision Plastic Injection Moulds, Vacuum Forming
Moulds, Stamping Dies and Semicon Tooling Components. PREMACOR operates a
well-equipped airconditioned tool room. Its workshop is stocked with the latest model,
high-grade machinery made by some fo the worlds best-known manufacturer, a number
of which are capable to achieve single digit tolerances.
PREMACORs best assets are the competent and highly trained men who are
specialists in all machining disciplines and trained by foreign experts both locally and
abroad. These dedicated workers provide the highest quality of service for each
customer. The vision of PREMACOR is to be at the forefront of the metalworking
industry, maintaining updated and state-of-the-art machineries and equipment, run by
competent, highly skilled and dedicated individuals with an intense desire to produce
excellent services and goods.

ORGANIZATIONAL CHART
To maintain an organized working environment, specification of each individuals
tasks is necessary. This act is commonly known as segregation of duties. By this,
specific duties and assignment of offices is done to achieve a systematic organization.
The entitys organizational chart is shown in Exhibit 1.

VISION
To be a leader in the industry producing metal products and components of WORLD
CLASS QUALITY

MISSION
To create and maintain a facility with modern machineries and equipment run by
competent and dedicated individuals.
The mission of the company is a very important statement for this states the
actions needed to be done by the company itself to achieve its vision. To sum it up, the
mission of the company would entail the provision of machineries in line with the
modernization to cope with global competition.

QUALITY POLICY
We are committed to provide the best quality products and services and continuously
improve the system and ensure Total Customer Satisfaction

QUALITY OBJECTIVE
Defect-free Products
On-time deliveries
Cost Effective
Continuous Skills Upgrading
Maximize Man-Machine Uptime
There is a need for every entity to provide the best quality possible for it
determines the entitys market share. Quality products would be a good determinant of
how the entity operates. By achieveing such quality, the entity would gain an edge over
its competitors.

PRODUCTS
PRECISION FORMING COPORATION (PREFORMING)PREFORMING is a
SEC-registered company engaged in the manufacture of precision parts for automotive,
semicon, computer and electronics industries.
The company was founded in 1998 purposely to cater to the automotive industry.
Later on, PREFORMING expanded its horizon to cover other industries focusing on lowpriced, high quality products. The company maintains a potent workforce of
competent, highly skilled and trained individuals who recognize and understand
customers needs and requirements. It has acquired a variety of press machines
ranging from 2 tons to 100 tons. From machine pressing, machining to packing every
step in its processes is guided by one principle maintain quality for total customer
satisfaction.

COMPETITIVE/OPERATIONAL CHALLENGES
In every business endeavor, certain risks are always involved. It is inherent for
such endeavors to face different challenges which is caused by different factors present
in the environment.
Precision Machinist Corporation is not an exception. The entity itself finds it hard
to overcome such challenges especially at times of recession. An important indicator of
this is found in the international economy. Considered as an indirect exporter and an
importer at the same time, their market share in the international market plays an
important factor in their daily operations.
The presence of competition is normal in any economic setting. An identification
of such competitors would be very much significant for the entity especially in their
decision making as to how they would do their part in the business world. With this, the
following are the competitors identified by the entity itself:
NSB Engineering

 Machine Sytem
G&S Machine Shop
Ebecor Engineering
Aside from the challenges found in their external environment, one challenge that
they consider as important is maintaining their stand regarding the quality that they
provide to the market. By such, continuous development of existing practices is a
necessity. Innovation, being the key to this, would help the entity to overcome this
particular challenge.
REFERENCES:
http://successtales.blogspot.com/2006/09/precision-machinist-corporation.html
September 15,2006
http://premacorcebu.com/